US-listed shares of Kingsoft Cloud slide after stock offering priced

Kingsoft

16/04/2025 14:46

Updates

** U.S.-listed shares of Kingsoft Cloud KC.O slide 15% to $11.22 in early trading

** Beijing-based cloud service provider KC sold 18.5 million American depositary shares on Wednesday in its stock offering at $11.27 apiece for proceeds of $208.5 million

** Offering priced at a 14.6% discount to stock's last close

 ** Morgan Stanley, Goldman Sachs, CICC, Deutsche Bank, HSBC and Merrill Lynch were the underwriters

** Concurrently, existing shareholder Kingsoft Corp 3888.HK agreed to purchase ~69.4 million KC ordinary shares in a private placement

** Gross proceeds of $260.7 million from public offering and private placement will be used to upgrade infrastructure, technology investments, and other purposes

** KC closed down 6% at $13.20 on Tuesday

** 5 of 8 brokerages rate stock "buy" or higher and three "hold"; median PT $18.10 - data compiled by LSEG

** As of last close, KC stock was up 25.8% YTD

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))